Feytech Holdings Bhd posted a 94.2% jump in profit after tax (PAT) to RM4.03 million for the first quarter ended March 31, 2026 (1Q26), driven by stronger sales from its automotive seat segment and contributions from new foreign automotive brands.
Revenue for the quarter rose 32% year-on-year (YoY) to RM38.93 million from RM29.49 million previously, supported by the group’s deliberate focus on a higher-value product mix and improved operating leverage.
The automotive seat segment remained Feytech’s key growth engine, expanding 68.9% YoY, or RM23.57 million, amid higher sales to existing automotive marques and incremental contributions from a new foreign automotive brand.
Chief Executive Officer Connie Go said the group’s 1Q26 performance reflected the strength of its manufacturing capabilities and strategic product positioning.
“The 1Q26 result demonstrates the strength of Feytech’s manufacturing core and our ability to execute on the right product decisions.
“We have improved our margin profile significantly while securing new projects that will underpin multi-year revenue visibility. The foundation we are building now is designed to deliver durable, not just immediate, value,” she said.
During the quarter, Go revealed that Feytech secured a new seat cover supply contract with Proton for an upcoming model.
“The 84-month contract is expected to generate approximately RM96.83 million in total revenue, averaging RM13.8 million annually.
“Additionally, the group also secured original equipment manufacturer contracts with Chery and Hyundai through the completely knocked-down (CKD) assembly channel, broadening its exposure to international automotive brands,” she said.
Separately, she also shared that the group has extended the utilisation timeline for RM51.5 million in IPO proceeds allocated for the construction of its new corporate office, manufacturing plant, warehouse and Kulim Plant 2, citing a measured approach to capital deployment.
“As at March 31, 2026, the group held deposits, cash and bank balances of RM39.28 million, alongside other investments worth RM130.26 million,” she said, while emphasising that the group’s healthy balance sheet allows it to remain disciplined in capital allocation while prioritising projects with stronger returns.
Looking ahead, Go said the group expects tighter electric vehicle import conditions announced by the Investment, Trade and Industry Ministry to accelerate localisation trends and boost demand for local CKD suppliers.
“However, the group remains cautiously optimistic on the sector outlook, as foreign automakers may increasingly turn to local assembly operations, benefitting domestic automotive parts manufacturers such as Feytech,” she added.
